Analysis of India as a destination for private equity investment

Abstract

Through the project, we have tried to analyze the private equity industry in the emerging markets, with a focus on India. After establishing the fundamentals that govern this industry, we evaluated six sectors in India from the investment perspective. Based on a study of India’s growing economy, policy and regulation governing the sectors, growth drivers for the sector and the opportunities that exist, we rated each of these sectors as a destination for private equity investment. Subsequently we build a database of all private equity investments done in India in the year 2010. We categorized the deals into sectors and analyzed them based on deal size. We found that the sectors we highlighted as lucrative for Private Equity investment were in line with the investments done by the PE firms in India, thereby confirming our results. Based on fundamental analysis, we believe that Banking, Power and Telecommunications carry a significant potential for growth. We recommend these sectors for future investment focus by PE firms.